Facebook may face extra $5 bn tax bill

London, July 30 (IANS) Social media giant Facebook may be liable to pay $3 to $5 billion in extra tax after AUS Internal Revenue Service (IRS) investigated the way the company transferred assets to Ireland.

IRS has been exploring how the tech company transferred assets to Ireland and whether it deliberately tried to minimise the tax it paid in the US, a report in the Guardian said.

“The IRS issued the firm with a ‘statutory notice of deficiency’ on July 27, the company said in its quarterly financial filing, noting that it could have a ‘material adverse impact’ on its finances,” the report noted.

Facebook broke out the possible loss in its earnings report, as a minimum of $3 billion and maximum of $5 billion. It would also be liable for interest lost, though any additional penalties are not known, the report added.